NZ dollar quiet ahead of dairy auction

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The New Zealand dollar has flattened out after a tumultuous start to the week, but tonight’s GlobalDairyTrade auction could send it tumbling again.

Markets were quick to sell off the kiwi yesterday after the Reserve Bank said it had intervened in the currency market by selling $521 million last month to bring the dollar down.

At 4pm yesterday the kiwi dropped to a four-year low against sterling of 47.49p and a one-year low of US77.11 against the greenback.

It bounced back slightly from these lows and has traded at about 47.7p and US77.6c for most of the past 24 hours.

This was a marked change from yesterday, when it was the worst performing currency, losing 1.1 per cent against the United States dollar.

CMC Markets New Zealand general manager Chris Smith said markets were hoping for at least a flat dairy auction overnight.

A price drop would send the dollar lower.

«Any surprise fall will see the New Zealand dollar break US77c and open up the doors to US75c,» he said.

«Dairy prices have already fallen more than 40 per cent and any further fall from here would be significant.»

BNZ economists said they would not be surprised if the next update from the Reserve Bank, due on October 30, showed it had intervened by a similar amount in September.

However, they did not anticipate Reserve Bank governor Graeme Wheeler going «toe to toe» with the market, which trades about $53 billion of the New Zealand dollar a day.

«Governor Wheeler and his advisers are well aware of these constraints. Their actions in the past few months are proof of that,» BNZ economists said.

«The introduction of intervention buzzwords in July, the refusal to address rumours of action in August, the surprise attack last week and the hotly anticipated reveal yesterday all speak of a tightly managed operation.

«That last week’s statement was released as the New Zealand dollar/US dollar rate was teetering on key support levels harks of tactical nous.»

BNZ has lowered its year-end target from US80c to US78c and left its end of 2015 prediction at US73c.

Source: Stuff

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Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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